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Grading Bond

What is a grading permit bond?

A grading bond is a type of permit surety bond generally required when a construction project involves moving an amount of earth that exceeds city or county limits.

Grading bonds may also be known by other names, such as:

  • Grading Permit Surety Bond
  • Excavation Contractor Bond
  • Soil Erosion or Sediment Control Bond
  • Clearing and Earthwork Contractor Bond

How much does a grading permit bond cost?

The cost of a grading permit bond can be as low as 0.875% of the bond amount, but this can vary depending on the jurisdiction. Municipalities may base the bond amount on the number of cubic yards of soil excavated or filled, plus the cost of all drainage or other protective devices or work necessary to eliminate geotechnical hazards. Your credit report as well as business and personal financial statements will also factor into the cost of the bond premium.

Why do I need a grading permit bond?

A grading bond guarantees that all grading work will be completed according to approved plans, applicable laws, and the terms outlined in the grading permit. These bonds are typically required at the local government level, though the specific requirements can vary depending on the jurisdiction.

In many areas, requirements are based on the amount of soil or earth being moved, with different thresholds depending on the project size or location. To determine whether a grading bond is required for your project, check with your city or county’s public works or permitting department.

How can I get a grading bond?

Call us at 855-575-1063 or complete our contact form to get your grading permit bond.

Does a grading/excavation permit bond expire?

The permit bond expires on the specified expiration date, typically one year from the date of issuance. If the project takes more than a year, you will need to purchase another bond.

What else should I know about grading bonds?

Expect to provide site and grading plans for the project to the local municipalities where the project is based. Check with the individual entities before purchasing a grading/excavation permit bond to see what they require.